Sumitomo Osaka Cement (5232) Q4 2025 earnings summary

Executive summary

• Operating income in the cement business returned to profitability, driven by price hikes and lower coal prices year-over-year.

• Net sales declined 1.4% year-over-year to ¥219.5 billion due to lower domestic cement and advanced materials sales volumes.

• Net income attributable to owners fell 41.3% to ¥9.01 billion, mainly due to a lack of extraordinary gains from cross-shareholding or investment securities sales.

• Dividend per share remained unchanged at 120 yen.

• Comprehensive income dropped 63.5% to ¥5,942 million.

Financial highlights

• FY2024 sales: ¥219.5 billion, down from ¥222.5 billion year-over-year.

• Operating income increased 29% year-over-year to ¥9.35 billion.

• Net income: ¥9.01 billion, down from ¥15.34 billion year-over-year.

• ROE: 4.7%, ROIC: 2.4% for FY2024.

• Dividend per share maintained at ¥120.00, payout ratio 44.4%.

Outlook and guidance

• FY2025/2026 sales forecast: ¥235.0 billion, operating income: ¥19.0 billion, net income: ¥14.0 billion.

• Cement and advanced materials businesses expected to drive revenue and income growth due to price hikes and coal price declines.

• Dividend per share forecast to remain at 120 yen, with interim and year-end dividends of ¥60.00 each.

• Management targets a total return ratio of 50% or more over the medium-term plan.

• Exchange rate assumption: ¥145/$; coal price: $135/t.